Like all things in the modern world, divorce is expensive, with costs ballooning significantly. According to Real Insurance’s Real Cost of Separation 2026, some divorce proceedings are costing up to $1 million, causing 39 per cent of Australians considering a divorce to delay that decision out of fear for their finances.
“Given the rate of divorce, it’s absolutely incumbent on us to make sure clients have a plan for how it’s going to work if their relationship breaks down,” Jordan Vaka, founder of Planning Solo told ifa.
“I think advisers should be encouraging clients to think about relationship breakdown as a financial risk. The challenge isn’t whether they should — it’s how you actually have that conversation.”
According to the report, a ‘good’ divorce will cost a client on average $5,311, but the average cost is typically $12,678. These figures include all associated expenses, including mediation, legal advice, financial planning, divorce application fees, and asset division implementation.
“The financial implications of divorce are often the most expensive thing people will ever experience. Most households are already stretched supporting one home, so the prospect of funding two households while dividing assets can feel overwhelming,” Nathan Fradley of Fradley Advice also told ifa.
“One of the most valuable things advisers can do isn’t helping clients prepare financially for divorce — it’s making sure both members of a couple are equally financially empowered long before a relationship reaches that point.”
Vaka agreed, highlighting the best thing advisers can do in case of separation is ensuring both fully understand the family’s financial situation at any given point, highlighting that when both partners are informed, imbalances are significantly reduced.
“Business owners are a good example. Advisers should be encouraging uninvolved spouses to come along to meetings so everyone understands how the finances work and has a safe space to raise concerns,” he said.
Vaka added that beyond immediate finances, advisers also need to encourage clients to think about issues of estate planning, if Centrelink is involved as well as budget and investing complexities to ensure these do not become costly legal disputes later on.
“Their wills and Powers of Attorney should be reviewed as soon as possible after separation. It’s vital that clients work with an estate planning solicitor to ensure their wishes are properly reflected.”
“If clients are continuing to live together after separating because they can’t afford to move, advisers can play an important role in helping both parties establish a clear financial structure, agree on how expenses will be managed and put a timeframe around those arrangements,” Fradley added.
“As advisers, it’s important that we help keep the temperature low. That means encouraging empathy, discouraging the use of money as a weapon, and helping clients focus on practical financial decisions rather than conflict.”
Divorce can become a financially and emotionally complex situation for many clients, and also an expensive one that can delay decisions and greatly reduce financial confidence. While it is well beyond the professional and ethical scope of advisers to push clients one way or another regarding their relationships, it is within their scope to equipped them with the financial confidence needed to make the right decision.
“After a separation, advisers also have an opportunity to help clients rebuild financial confidence. For many people, it’s the first time they’ve had sole responsibility for their own finances, so education and empowerment become just as important as the technical advice,” Fradley said.
